By David Shepardson
(Reuters) -Southwest Airlines and Archer Aviation said on Friday they have agreed to develop operational plans for electric air taxi networks built by Archer at airports in California, where Texas-based Southwest operates.
The companies said they have signed a Memorandum of Understanding to collaborate on an operational concept that lays the foundation for integrated electric air taxi networks connecting California airports and surrounding communities.
Shares of Southwest rose 2%, while Archer rose 10.5%.
Electric vertical take-off and landing (eVTOL) aircraft are being touted as the future of urban air mobility. Archer is developing its Midnight eVTOL aircraft.
Airlines are considering developing transportation services using battery-powered aircraft that can take off and land vertically to ferry travelers to airports or short trips between cities, helping them beat traffic.
“Southwest is eager to explore the convenience that Archer air taxis can provide to customers flying to Southwest at airports in busy urban areas,” said Paul Cullen, vice president of real estate at Southwest, which operates in 14 airports in California.
In May, the US Congress passed legislation aimed at accelerating the adoption and deployment of eVTOL aircraft.
Archer believes the partnership could help reduce significant furlough travel in California, replacing 60 to 90 minutes of car travel with an estimated 10 to 20 minute air taxi flights via a “safe, low-noise and cost-competitive transportation option.” without direct emissions.”
Archer Chief Commercial Officer Nikhil Goel said the partnership hopes to offer door-to-door travel anywhere in California in three hours or less, such as from Santa Monica to Napa, using air taxis at both ends.
Goel said there were “really meaningful time savings” possible, with passengers able to avoid rush hour traffic to airports. Archer hopes that customers will eventually be able to book an Archer air taxi ticket at the same time they purchase a Southwest airline ticket.
United Airlines is also an investor in Archer Aviation.
In 2022, Delta Air Lines (NYSE:) said it had invested $60 million in air taxi startup Joby Aviation (NYSE:) for a 2% equity stake, with the aim of initially offering passengers air taxi transportation to and from airports in New York and Los Angeles.
The companies plan to integrate a Joby-managed service into Delta’s customer-facing channels to provide short-haul airport transportation.
